Tuesday, May 24, 2011

FOCUS update

Many investors seem confused at this point, which should be expected. We are now over two years into this bull and of course it flys in the face of reality at this point. That is the game. Why is everyone so droll? Because you are trying to use "reality" as your guide for the stock market. This is the mistake of the retail investor. They believe the hype from the MSM that tells you the stock market is the most rationale reflection of the real economy. HA! So let's see where we are since its time to make money.

1) We expected a severe correction in silver almost two months ago .... check

2) We expected to have the eurozone reemerge as the source of fear this summer... check

3) We expected a strengthening of the dollar as a result of number 2 and whatever multitude of fear issues they could throw in the pot (Middle East, North Africa, Icelandic volcano etc).... check

4) There would be an accumulation/consolidation phase for the Precious Metals that could last for weeks..... check

5) The market overall would remain in a range with probably a significant correction to justify the need for QE 3....... ________ stay tuned.

We are at that finely tuned aspect of market manipulation that is making a lot of bulls very nervous. That's good if you are expecting this PM trade to gain some traction. There is a lot of negativity now in the metals trade. We have shaken the trees and now the stronger hands are taking over the trade. We could get further shaking over the next couple of months ( which I expect).... but right now we are in a range that I am more comfortable investing in. The miners have had a three month correction and are sitting at very nice levels. This is where the longer term traders here should be building a nice core in oversold miners like EGO GFI GPL PGZ ANV SLW SSRI..... Paulson is....Soros is...... The headlines are that Soros is selling. In fact he is. He sold GLD ENTIRELY!!!!! Its and ETF that is rumored to be a fraud. After he sold his large holding it confirms to me it probably IS!

I am not surprised by the destruction of interest in the market by the public but if you are asleep by the tick tick of the watch they are swinging in front of you then you had better wake up. Use the fear to accumulate some of the miners and trade some at the same time if you wish. We could even get a nice bull run in the market to put the icing on QE 2 and destroy the bears right here. Ben would decare QE 2 victory once and for all. Throw in some more terror and ouila we have QE3.... One way or another we will have some form of QE3. It may not be called that but it will be monetization. There is no choice for the weak kneed politicians. It may be an ugly summer so be prepared for some swings. gl

comments are down from google......again.....nice day in the metals.....


  1. pzg, gpl, EXK! nice day...!

  2. Anonymous said...
    well LDK's foray in the 6's was short...my theory and please pick a part.

    GS is opening new fund in China, said chinese stocks are gonna fly in second half, look at all the low pe's on llen, gfre, scei, ldk etc...10Q's are all out...they are legit...if I was GS I would drive them down before I open fund and then add those beaten pos's to my fund......wala, easy upside for clients and they all praise the work of the god fathers...

    "His positive comments on the outlook for China came as two people with knowledge of the matter said Goldman Sachs plans to set up a yuan-denominated private equity fund in the nation. Chief Executive Officer Lloyd C. Blankfein attended a ceremony for

  3. Errr..well, LDK still in the 6's at the close today, down the last 10 days in a row...will we see 5's, I do not think so unless the general market completely tanks...

  4. lets try converting to ANONYMOUS for comments.....select anonymous and post your name so we know who you are kliguy

  5. Ok dokay we're up now....use anonymous

  6. still unable to post with google.......use anon on profile gang

  7. Cripes - google suffering again? At least its not Sony!!! ;-)

  8. Futures tanking overnight. Silver popped Tuesday. Miners seemed to follow, not lead silver. Not sure what this will mean for the markets in the morning. Nothing I can do at this time of night anyway. Will just need to watch Wednesday. Frustrating if the move I was looking for gets slammed by a market crash.

  9. Ken all controlled take down...miners and PMs need to consolidate ...this is a process so don't push it....if you trade them here ...fine..but accumulating them on weakness will be the simplest way to handle the gift.

  10. yeah I am back on the comments.....hehehehheheheh